1 | 1 | | BILL AS INTRODUCED H.378 |
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2 | 2 | | 2025 Page 1 of 18 |
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4 | 4 | | |
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5 | 5 | | VT LEG #381015 v.3 |
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6 | 6 | | H.378 1 |
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7 | 7 | | Introduced by Representatives Bartley of Fairfax, Canfield of Fair Haven, 2 |
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8 | 8 | | Bosch of Clarendon, Duke of Burlington, Graning of Jericho, 3 |
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9 | 9 | | Krasnow of South Burlington, Marcotte of Coventry, Micklus 4 |
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10 | 10 | | of Milton, Priestley of Bradford, and White of Bethel 5 |
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11 | 11 | | Referred to Committee on 6 |
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12 | 12 | | Date: 7 |
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13 | 13 | | Subject: Taxation and finance; education property tax; tax increment 8 |
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14 | 14 | | financing; municipal and county government; indebtedness; TIF 9 |
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15 | 15 | | Statement of purpose of bill as introduced: This bill proposes to establish a 10 |
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16 | 16 | | housing infrastructure tax increment financing program, administered by the 11 |
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17 | 17 | | Vermont Economic Progress Council, to authorize municipalities to use 12 |
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18 | 18 | | statewide education property tax and municipal property tax increment to pay 13 |
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19 | 19 | | for financing undertaken by the municipality, a developer, or a sponsor for 14 |
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20 | 20 | | infrastructure that will stimulate housing development within a geographically 15 |
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21 | 21 | | eligible area. 16 |
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22 | 22 | | An act relating to tax increment financing for housing infrastructure 17 |
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23 | 23 | | It is hereby enacted by the General Assembly of the State of Vermont: 18 |
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24 | 24 | | Sec. 1. 24 V.S.A. chapter 53, subchapter 7 is added to read: 19 |
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25 | 25 | | Subchapter 7. Housing Infrastructure Tax Increment Financing 20 BILL AS INTRODUCED H.378 |
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26 | 26 | | 2025 Page 2 of 18 |
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27 | 27 | | |
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28 | 28 | | |
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29 | 29 | | VT LEG #381015 v.3 |
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30 | 30 | | § 1906. DEFINITIONS 1 |
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31 | 31 | | As used in this subchapter: 2 |
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32 | 32 | | (1) “Brownfield” means a property on which the presence or potential 3 |
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33 | 33 | | presence of a hazardous substance, pollutant, or contaminant complicates the 4 |
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34 | 34 | | expansion, development, redevelopment, or reuse of the property. 5 |
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35 | 35 | | (2) “Committed” means pledged and appropriated for the purpose of the 6 |
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36 | 36 | | current and future payment of financing and related costs. 7 |
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37 | 37 | | (3) “Developer” means the person undertaking to develop a housing 8 |
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38 | 38 | | infrastructure project. 9 |
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39 | 39 | | (4) “Financing” means debt, including principal, interest, and any fees 10 |
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40 | 40 | | or charges directly related to that debt, incurred by a sponsor to pay for a 11 |
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41 | 41 | | housing infrastructure project and, in the case of a sponsor that is a 12 |
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42 | 42 | | municipality, authorized by the municipality pursuant to section 1910 of this 13 |
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43 | 43 | | subchapter. 14 |
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44 | 44 | | (5) “Housing development site” means the parcel or parcels 15 |
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45 | 45 | | encompassing a housing infrastructure project authorized by a municipality 16 |
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46 | 46 | | pursuant to section 1907 of this subchapter. 17 |
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47 | 47 | | (6) “Housing infrastructure project” means an improvement or 18 |
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48 | 48 | | improvements authorized by a municipality pursuant to section 1907 of this 19 |
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49 | 49 | | subchapter. 20 |
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50 | 50 | | (7) “Improvements” means: 21 BILL AS INTRODUCED H.378 |
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52 | 52 | | |
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53 | 53 | | |
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54 | 54 | | VT LEG #381015 v.3 |
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55 | 55 | | (A) the installation or construction of infrastructure, including 1 |
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56 | 56 | | utilities, transportation, public facilities and amenities, land and property 2 |
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57 | 57 | | acquisition and demolition, brownfield remediation, site preparation, and flood 3 |
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58 | 58 | | remediation and mitigation; and 4 |
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59 | 59 | | (B) the funding of debt service interest payments for a period of up to 5 |
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60 | 60 | | three years, beginning on the date on which the first debt is incurred. 6 |
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61 | 61 | | (8) “Legislative body” means the mayor and alderboard, the city 7 |
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62 | 62 | | council, the selectboard, and the president and trustees of an incorporated 8 |
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63 | 63 | | village, as appropriate. 9 |
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64 | 64 | | (9) “Municipality” means a city, town, or incorporated village. 10 |
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65 | 65 | | (10) “Original taxable value” means the total valuation as determined in 11 |
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66 | 66 | | accordance with 32 V.S.A. chapter 129 of a housing development site as of its 12 |
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67 | 67 | | creation date. 13 |
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68 | 68 | | (11) “Public infrastructure agreement” means a legally binding 14 |
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69 | 69 | | agreement to develop a housing infrastructure project between a municipality 15 |
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70 | 70 | | and a sponsor or developer, or both. 16 |
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71 | 71 | | (12) “Related costs” means expenses incurred and paid by a 17 |
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72 | 72 | | municipality, exclusive of the actual cost of constructing and financing a 18 |
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73 | 73 | | housing infrastructure project, that are directly related to the creation and 19 |
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74 | 74 | | implementation of the municipality’s housing infrastructure project, including 20 |
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75 | 75 | | reimbursement of sums previously advanced by the municipality for those 21 BILL AS INTRODUCED H.378 |
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77 | 77 | | |
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78 | 78 | | |
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79 | 79 | | VT LEG #381015 v.3 |
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80 | 80 | | purposes. Related costs may not include direct municipal expenses such as 1 |
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81 | 81 | | departmental or personnel costs. 2 |
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82 | 82 | | (13) “Sponsor” means the person undertaking to finance a housing 3 |
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83 | 83 | | infrastructure project. Any of a municipality, a developer, or an independent 4 |
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84 | 84 | | agency that meets State lending standards may serve as a sponsor for a housing 5 |
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85 | 85 | | infrastructure project. 6 |
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86 | 86 | | § 1907. CREATION OF HOUSING INFRASTRUCTURE PROJECT AND 7 |
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87 | 87 | | HOUSING DEVELOPMENT SITE 8 |
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88 | 88 | | (a) The legislative body of a municipality may create within its jurisdiction 9 |
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89 | 89 | | a housing infrastructure project, which shall consist of improvements that 10 |
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90 | 90 | | stimulate the development of housing, and a housing development site, which 11 |
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91 | 91 | | shall consist of the parcel or parcels on which a housing infrastructure project 12 |
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92 | 92 | | is installed or constructed. 13 |
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93 | 93 | | (b) To create a housing infrastructure project and housing development 14 |
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94 | 94 | | site, a municipality shall: 15 |
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95 | 95 | | (1) develop a housing development plan, including: 16 |
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96 | 96 | | (A) a description of the proposed housing infrastructure project and 17 |
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97 | 97 | | the proposed housing development site; 18 |
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98 | 98 | | (B) identification of a sponsor; 19 |
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99 | 99 | | (C) a development financing plan; 20 |
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100 | 100 | | (D) a pro forma projection of expected costs; 21 BILL AS INTRODUCED H.378 |
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102 | 102 | | |
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103 | 103 | | |
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104 | 104 | | VT LEG #381015 v.3 |
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105 | 105 | | (E) a projection of revenues; and 1 |
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106 | 106 | | (F) a development schedule that includes a list, a cost estimate, and a 2 |
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107 | 107 | | schedule for the proposed housing infrastructure project and projected private 3 |
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108 | 108 | | development to occur as a result of the proposed housing infrastructure project; 4 |
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109 | 109 | | (2) develop a plan describing the housing development site by its 5 |
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110 | 110 | | boundaries and the properties therein, entitled “Proposed Housing 6 |
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111 | 111 | | Development Site (municipal name), Vermont”; 7 |
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112 | 112 | | (3) hold one or more public hearings, after public notice, on the 8 |
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113 | 113 | | proposed housing infrastructure project, including the plans developed 9 |
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114 | 114 | | pursuant to this subsection; and 10 |
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115 | 115 | | (4) adopt by act of the legislative body of the municipality the plan 11 |
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116 | 116 | | developed under subdivision (2) of this subsection, which shall be recorded 12 |
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117 | 117 | | with the municipal clerk and lister or assessor. 13 |
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118 | 118 | | (c) The creation of a housing development site shall occur at 12:01 a.m. on 14 |
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119 | 119 | | April 1 of the calendar year in which the Vermont Economic Progress Council 15 |
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120 | 120 | | approves the use of tax increment financing for the housing infrastructure 16 |
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121 | 121 | | project pursuant to section 1909 of this subchapter. 17 |
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122 | 122 | | § 1908. PUBLIC INFRASTRUCTURE AGREEMENT 18 |
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123 | 123 | | (a) The public infrastructure agreement for a housing infrastructure project 19 |
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124 | 124 | | shall: 20 BILL AS INTRODUCED H.378 |
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126 | 126 | | |
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127 | 127 | | |
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128 | 128 | | VT LEG #381015 v.3 |
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129 | 129 | | (1) clearly identify the developer and sponsor for the housing 1 |
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130 | 130 | | infrastructure project; 2 |
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131 | 131 | | (2) clearly identify the housing development projected for the housing 3 |
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132 | 132 | | development site and identify the substantial completion target for certification 4 |
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133 | 133 | | pursuant to subsection 1910b(d); 5 |
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134 | 134 | | (3) obligate the tax increments retained pursuant to section 1910b of this 6 |
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135 | 135 | | subchapter for not more than the financing and related costs for the housing 7 |
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136 | 136 | | infrastructure project; 8 |
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137 | 137 | | (4) provide as consideration offered by the municipality not more than 9 |
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138 | 138 | | the tax increments retained pursuant to section 1910b of this subchapter; and 10 |
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139 | 139 | | (5) ensure the municipality pursuing the housing infrastructure project is 11 |
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140 | 140 | | protected against developer or sponsor failure to perform. 12 |
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141 | 141 | | (b) A municipality shall provide notice of the terms of the public 13 |
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142 | 142 | | infrastructure agreement governing the municipality’s housing infrastructure 14 |
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143 | 143 | | project to the legal voters of the municipality and shall provide the same 15 |
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144 | 144 | | information as set forth in subsection 1910(e) of this subchapter. 16 |
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145 | 145 | | § 1909. HOUSING INFRASTRUCTURE PROJECT APPLICATION; 17 |
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146 | 146 | | VERMONT ECONOMIC PROGRESS COUNCIL 18 |
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147 | 147 | | (a) A municipality, upon approval of its legislative body, may apply to the 19 |
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148 | 148 | | Vermont Economic Progress Council to use tax increment financing for a 20 BILL AS INTRODUCED H.378 |
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150 | 150 | | |
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151 | 151 | | |
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152 | 152 | | VT LEG #381015 v.3 |
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153 | 153 | | housing infrastructure project. The Vermont Economic Progress Council may 1 |
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154 | 154 | | approve only applications meeting the standards of this section. 2 |
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155 | 155 | | (b) Staff of the Council may approve applications submitted to meet either 3 |
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156 | 156 | | location criterion of subdivisions (d)(2)(A)–(B) of this section, but applications 4 |
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157 | 157 | | submitted to meet either location criterion of subdivisions (d)(2)(C)–(D) of this 5 |
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158 | 158 | | section shall require approval of the board. 6 |
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159 | 159 | | (c) The Vermont Economic Progress Council shall review a municipality’s 7 |
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160 | 160 | | housing infrastructure project application to determine whether the 8 |
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161 | 161 | | municipality has: 9 |
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162 | 162 | | (1) created a housing infrastructure project and housing development 10 |
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163 | 163 | | site pursuant to subsection 1907(b) of this subchapter; 11 |
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164 | 164 | | (2) executed a public infrastructure agreement to develop the housing 12 |
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165 | 165 | | infrastructure project with a sponsor or developer, or both, adhering to the 13 |
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166 | 166 | | standards of subsection 1908(a) of this subchapter; and 14 |
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167 | 167 | | (3) approved or pledged to use incremental municipal tax revenues for 15 |
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168 | 168 | | the housing infrastructure project in the proportion provided in subsection 16 |
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169 | 169 | | 1910b(b) of this subchapter. 17 |
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170 | 170 | | (d) The Vermont Economic Progress Council shall review a municipality’s 18 |
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171 | 171 | | housing infrastructure project application to determine whether the housing 19 |
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172 | 172 | | development plan meets the following criteria: 20 BILL AS INTRODUCED H.378 |
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174 | 174 | | |
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175 | 175 | | |
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176 | 176 | | VT LEG #381015 v.3 |
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177 | 177 | | (1) at least 50 percent of the gross floor area of the projected private 1 |
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178 | 178 | | development is dedicated to housing; and 2 |
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179 | 179 | | (2) the housing development site is located within one of the following 3 |
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180 | 180 | | areas: 4 |
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181 | 181 | | (A) an area designated Tier 1 pursuant to 10 V.S.A. chapter 151; 5 |
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182 | 182 | | (B) an area exempt from the provisions of 10 V.S.A. chapter 151 6 |
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183 | 183 | | pursuant to 10 V.S.A. § 6081(dd); 7 |
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184 | 184 | | (C) an existing settlement as that term is defined in 10 V.S.A. 8 |
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185 | 185 | | § 6001(16); or 9 |
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186 | 186 | | (D) an area within one half-mile of an existing settlement as that term 10 |
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187 | 187 | | is defined in 10 V.S.A. § 6001(16). 11 |
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188 | 188 | | (e) The Vermont Economic Progress Council shall approve a 12 |
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189 | 189 | | municipality’s tax increment financing plan prior to a sponsor’s incurrence of 13 |
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190 | 190 | | debt for the housing infrastructure project, including, if the sponsor is a 14 |
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191 | 191 | | municipality, prior to a public vote to pledge the credit of the municipality 15 |
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192 | 192 | | under section 1910 of this subchapter. The tax increment financing plan shall 16 |
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193 | 193 | | include all information related to the proposed financing necessary for 17 |
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194 | 194 | | approval by the Council and to ensure its viability and consistency with the 18 |
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195 | 195 | | housing development plan developed pursuant to subdivision 1907(b)(1) of 19 |
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196 | 196 | | this subchapter. 20 BILL AS INTRODUCED H.378 |
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199 | 199 | | |
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200 | 200 | | VT LEG #381015 v.3 |
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201 | 201 | | § 1910. INDEBTEDNESS 1 |
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202 | 202 | | (a) A municipality approved for tax increment financing under section 2 |
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203 | 203 | | 1909 of this subchapter may incur indebtedness against revenues of the 3 |
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204 | 204 | | housing development site at any time during a period of up to two years 4 |
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205 | 205 | | following the creation of the housing development site. If no debt is incurred 5 |
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206 | 206 | | for the housing infrastructure project during this two-year period, whether by 6 |
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207 | 207 | | the municipality or sponsor, the housing development site shall terminate. 7 |
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208 | 208 | | (b) Notwithstanding any provision of any municipal charter, each instance 8 |
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209 | 209 | | of borrowing by the municipality to finance or otherwise pay for a housing 9 |
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210 | 210 | | infrastructure project shall occur only after the legal voters of the municipality, 10 |
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211 | 211 | | by a majority vote of all voters present and voting on the question at a special 11 |
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212 | 212 | | or annual municipal meeting duly warned for the purpose, authorize the 12 |
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213 | 213 | | legislative body to pledge the credit of the municipality, borrow, or otherwise 13 |
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214 | 214 | | secure the debt for the specific purposes so warned. 14 |
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215 | 215 | | (c) Any indebtedness incurred under this section may be retired over any 15 |
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216 | 216 | | period authorized by the legislative body of the municipality. 16 |
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217 | 217 | | (d) The housing development site shall continue until the date and hour the 17 |
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218 | 218 | | indebtedness is retired or, if no debt is incurred, two years following the 18 |
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219 | 219 | | creation of the housing development site. 19 |
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220 | 220 | | (e) A municipal legislative body shall provide information to the public 20 |
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221 | 221 | | prior to the public vote required under subsection (b) of this section. This 21 BILL AS INTRODUCED H.378 |
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223 | 223 | | |
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224 | 224 | | |
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225 | 225 | | VT LEG #381015 v.3 |
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226 | 226 | | information shall include the amount and types of debt and related costs to be 1 |
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227 | 227 | | incurred, including principal, interest, and fees; terms of the debt; the housing 2 |
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228 | 228 | | infrastructure project to be financed; the private development projected to 3 |
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229 | 229 | | occur because of the housing infrastructure project; and notice to the voters 4 |
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230 | 230 | | that if the tax increment received by the municipality from any property tax 5 |
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231 | 231 | | source is insufficient to pay the principal and interest on the debt in any year, 6 |
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232 | 232 | | the municipality shall remain liable for the full payment of the principal and 7 |
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233 | 233 | | interest for the term of the indebtedness. If interfund loans within the 8 |
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234 | 234 | | municipality are used, the information must also include documentation of the 9 |
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235 | 235 | | terms and conditions of the loan. If interfund loans within the municipality are 10 |
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236 | 236 | | used as the method of financing, no interest shall be charged. 11 |
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237 | 237 | | § 1910a. ORIGINAL TAXABLE VALUE; TAX INCREMENT 12 |
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238 | 238 | | (a) As of the date the housing development site is created, the lister or 13 |
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239 | 239 | | assessor for the municipality shall certify the original taxable value and shall 14 |
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240 | 240 | | certify to the legislative body in each year thereafter during the life of the 15 |
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241 | 241 | | housing development site the amount by which the total valuation as 16 |
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242 | 242 | | determined in accordance with 32 V.S.A. chapter 129 of all taxable real 17 |
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243 | 243 | | property within the housing development site has increased or decreased 18 |
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244 | 244 | | relative to the original taxable value. 19 |
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245 | 245 | | (b) Throughout the life of the housing development site, the lister or 20 |
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246 | 246 | | assessor shall include not more than the original taxable value of the real 21 BILL AS INTRODUCED H.378 |
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248 | 248 | | |
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249 | 249 | | |
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250 | 250 | | VT LEG #381015 v.3 |
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251 | 251 | | property in the assessed valuation upon which the treasurer computes the rates 1 |
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252 | 252 | | of all taxes levied by the municipality and every other taxing district in which 2 |
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253 | 253 | | the housing development site is situated, but the treasurer shall extend all rates 3 |
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254 | 254 | | so determined against the entire assessed valuation of real property for that 4 |
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255 | 255 | | year. 5 |
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256 | 256 | | (c) Throughout the life of the housing development site, a municipality 6 |
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257 | 257 | | shall remit not less than the aggregate tax due on the original taxable value to 7 |
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258 | 258 | | the Education Fund. 8 |
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259 | 259 | | (d) Throughout the life of the housing development site, the municipality 9 |
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260 | 260 | | shall hold apart, rather than remit to the taxing districts, that proportion of all 10 |
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261 | 261 | | taxes paid that year on the real property within the housing development site 11 |
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262 | 262 | | that the excess valuation bears to the total assessed valuation. The amount 12 |
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263 | 263 | | held apart each year is the “tax increment” for that year. The tax increment 13 |
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264 | 264 | | shall only be used for financing and related costs. 14 |
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265 | 265 | | (e) Not more than the percentages established pursuant to section 1910b of 15 |
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266 | 266 | | this subchapter of the municipal and State education tax increments received 16 |
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267 | 267 | | with respect to the housing development site and committed for the payment 17 |
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268 | 268 | | for financing for improvements and related costs shall be segregated by the 18 |
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269 | 269 | | municipality in a special tax increment financing account and in its official 19 |
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270 | 270 | | books and records until all capital indebtedness incurred for the housing 20 |
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271 | 271 | | infrastructure project has been fully paid. The final payment shall be reported 21 BILL AS INTRODUCED H.378 |
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273 | 273 | | |
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274 | 274 | | |
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275 | 275 | | VT LEG #381015 v.3 |
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276 | 276 | | to the treasurer, who shall thereafter include the entire assessed valuation of the 1 |
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277 | 277 | | housing development site in the assessed valuations upon which the municipal 2 |
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278 | 278 | | and other tax rates are computed and extended, and thereafter no taxes from 3 |
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279 | 279 | | the housing development site shall be deposited in the special tax increment 4 |
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280 | 280 | | financing account. 5 |
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281 | 281 | | (f) Notwithstanding any charter provision or other provision, all property 6 |
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282 | 282 | | taxes assessed within a housing development site shall be subject to the 7 |
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283 | 283 | | provisions of this section. Special assessments levied under chapter 76A or 87 8 |
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284 | 284 | | of this title or under a municipal charter shall not be considered property taxes 9 |
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285 | 285 | | for the purpose of this section if the proceeds are used exclusively for 10 |
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286 | 286 | | operating expenses related to properties within the housing development site 11 |
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287 | 287 | | and not for the housing infrastructure project. 12 |
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288 | 288 | | § 1910b. USE OF TAX INCREMENT; RETENTION PERIOD ; 13 |
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289 | 289 | | SUBSTANTIAL COMPLETION 14 |
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290 | 290 | | (a) Education property tax increment. For only debt incurred within the 15 |
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291 | 291 | | period permitted under subsection 1910(a) of this subchapter and related costs, 16 |
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292 | 292 | | up to 80 percent of the education property tax increment may be retained for 17 |
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293 | 293 | | up to 20 years, beginning on July 1 of the year in which the Vermont 18 |
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294 | 294 | | Economic Progress Council certifies substantial completion of the housing 19 |
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295 | 295 | | development pursuant to subsection (d) of this section. 20 BILL AS INTRODUCED H.378 |
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297 | 297 | | |
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298 | 298 | | |
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299 | 299 | | VT LEG #381015 v.3 |
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300 | 300 | | (b) Municipal property tax increment. For only debt incurred within the 1 |
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301 | 301 | | period permitted under subsection 1910(a) of this subchapter and related costs, 2 |
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302 | 302 | | not less than 80 percent of the municipal property tax increment may be 3 |
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303 | 303 | | retained, beginning on July 1 of the year in which the Vermont Economic 4 |
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304 | 304 | | Progress Council certifies substantial completion of the housing development 5 |
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305 | 305 | | pursuant to subsection (d) of this section. 6 |
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306 | 306 | | (c) Excess tax increment. 7 |
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307 | 307 | | (1) Of the municipal and education property tax increments received in 8 |
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308 | 308 | | any tax year that exceed the amounts committed for the payment of the 9 |
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309 | 309 | | financing and related costs for a housing infrastructure project, equal portions 10 |
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310 | 310 | | of each increment may be retained for the following purposes: 11 |
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311 | 311 | | (A) to prepay principal and interest on the financing; 12 |
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312 | 312 | | (B) to place in a special tax increment financing account required 13 |
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313 | 313 | | pursuant to subsection 1910a(e) of this subchapter and use for future financing 14 |
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314 | 314 | | payments; or 15 |
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315 | 315 | | (C) to use for defeasance of the financing. 16 |
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316 | 316 | | (2) Any remaining portion of the excess education property tax 17 |
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317 | 317 | | increment shall be distributed to the Education Fund. Any remaining portion 18 |
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318 | 318 | | of the excess municipal property tax increment shall be distributed to the city, 19 |
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319 | 319 | | town, or village budget in the proportion that each budget bears to the 20 BILL AS INTRODUCED H.378 |
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322 | 322 | | |
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323 | 323 | | VT LEG #381015 v.3 |
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324 | 324 | | combined total of the budgets unless otherwise negotiated by the city, town, or 1 |
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325 | 325 | | village. 2 |
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326 | 326 | | (d) Substantial completion certification. A municipality shall promptly 3 |
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327 | 327 | | notify the Vermont Economic Progress Council upon completion of 50 percent 4 |
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328 | 328 | | of the housing development projected in the housing development plan 5 |
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329 | 329 | | developed pursuant to subdivision 1907(b)(1). The Vermont Economic 6 |
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330 | 330 | | Progress Council shall confirm and certify substantial completion of the 7 |
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331 | 331 | | housing development against the housing development plan for the purpose of 8 |
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332 | 332 | | starting the tax increment retention periods pursuant to subsections (a) and (b) 9 |
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333 | 333 | | of this section. 10 |
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334 | 334 | | § 1910c. INFORMATION REPORTING 11 |
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335 | 335 | | (a) A municipality with an active housing infrastructure project shall: 12 |
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336 | 336 | | (1) develop a system, segregated for the housing infrastructure project, 13 |
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337 | 337 | | to identify, collect, and maintain all data and information necessary to fulfill 14 |
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338 | 338 | | the reporting requirements of this section, including performance measures; 15 |
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339 | 339 | | (2) provide timely notification to the Department of Taxes and the 16 |
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340 | 340 | | Vermont Economic Progress Council of any housing infrastructure project 17 |
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341 | 341 | | debt, public vote, or vote by the municipal legislative body immediately 18 |
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342 | 342 | | following the debt incurrence or public vote on a form prescribed by the 19 |
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343 | 343 | | Council, including copies of public notices, agendas, minutes, vote tally, and a 20 BILL AS INTRODUCED H.378 |
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346 | 346 | | |
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347 | 347 | | VT LEG #381015 v.3 |
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348 | 348 | | copy of the information provided to the public pursuant to subsection 1910(e) 1 |
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349 | 349 | | of this subchapter; and 2 |
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350 | 350 | | (3) annually on or before October 15, submit on a form prescribed by 3 |
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351 | 351 | | the Vermont Economic Progress Council an annual report to the Council and 4 |
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352 | 352 | | the Department of Taxes, including the information required by subdivision (2) 5 |
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353 | 353 | | of this subsection if not previously submitted, the information required for 6 |
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354 | 354 | | annual audit under section 1910d of this subchapter, and any information 7 |
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355 | 355 | | required by the Council or the Department of Taxes for the report required 8 |
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356 | 356 | | pursuant to subsection (b) of this section. 9 |
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357 | 357 | | (b) Annually on or before January 1, the Vermont Economic Progress 10 |
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358 | 358 | | Council and the Department of Taxes shall submit a report to the Senate 11 |
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359 | 359 | | Committees on Economic Development, Housing and General Affairs and on 12 |
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360 | 360 | | Finance and the House Committees on Commerce and Economic Development 13 |
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361 | 361 | | and on Ways and Means on housing infrastructure projects approved pursuant 14 |
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362 | 362 | | to this subchapter, including for each: 15 |
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363 | 363 | | (1) the date of approval; 16 |
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364 | 364 | | (2) a description of the housing infrastructure project; 17 |
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365 | 365 | | (3) the original taxable value of the housing development site; 18 |
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366 | 366 | | (4) the scope and value of projected and actual improvements and 19 |
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367 | 367 | | developments in the housing development site; 20 |
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368 | 368 | | (5) projected and actual incremental revenue amounts; 21 BILL AS INTRODUCED H.378 |
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369 | 369 | | 2025 Page 16 of 18 |
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370 | 370 | | |
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371 | 371 | | |
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372 | 372 | | VT LEG #381015 v.3 |
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373 | 373 | | (6) the allocation of incremental revenue; 1 |
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374 | 374 | | (7) projected and actual financing; 2 |
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375 | 375 | | (8) performance measures developed by the Vermont Economic 3 |
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376 | 376 | | Progress Council; and 4 |
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377 | 377 | | (9) the amount of infrastructure work performed by Vermont firms. 5 |
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378 | 378 | | § 1910d. AUDITING 6 |
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379 | 379 | | Annually on or before April 1 until the year following the end of the period 7 |
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380 | 380 | | for retention of education property tax increment, a municipality with a 8 |
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381 | 381 | | housing infrastructure project approved under this subchapter shall ensure that 9 |
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382 | 382 | | the housing infrastructure project is subject to the annual audit prescribed in 10 |
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383 | 383 | | section 1681 or 1690 of this title and submit a copy to the Vermont Economic 11 |
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384 | 384 | | Progress Council. If a housing infrastructure project is subject only to the 12 |
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385 | 385 | | audit under section 1681 of this title, the Council shall ensure a process is in 13 |
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386 | 386 | | place to subject the housing infrastructure project to an independent audit. 14 |
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387 | 387 | | Procedures for the audit must include verification of the original taxable value 15 |
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388 | 388 | | and annual and total municipal and education property tax increments 16 |
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389 | 389 | | generated, expenditures for financing and related costs, and current balance. 17 |
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390 | 390 | | § 1910e. GUIDANCE 18 |
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391 | 391 | | (a) The Secretary of Commerce and Community Development, after 19 |
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392 | 392 | | reasonable notice to a municipality and an opportunity for a hearing, may issue 20 |
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393 | 393 | | decisions to a municipality on questions and inquiries concerning the 21 BILL AS INTRODUCED H.378 |
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394 | 394 | | 2025 Page 17 of 18 |
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395 | 395 | | |
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396 | 396 | | |
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397 | 397 | | VT LEG #381015 v.3 |
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398 | 398 | | administration of housing infrastructure projects, statutes, rules, 1 |
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399 | 399 | | noncompliance with this subchapter, and any instances of noncompliance 2 |
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400 | 400 | | identified in audit reports conducted pursuant to section 1910d of this 3 |
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401 | 401 | | subchapter. 4 |
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402 | 402 | | (b) The Vermont Economic Progress Council shall prepare 5 |
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403 | 403 | | recommendations for the Secretary of Commerce and Community 6 |
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404 | 404 | | Development prior to any decision issued pursuant to subsection (a) of this 7 |
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405 | 405 | | section. The Council may prepare recommendations in consultation with the 8 |
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406 | 406 | | Commissioner of Taxes, the Attorney General, and the State Treasurer. In 9 |
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407 | 407 | | preparing recommendations, the Council shall provide a municipality with a 10 |
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408 | 408 | | reasonable opportunity to submit written information in support of its position. 11 |
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409 | 409 | | (c) The Secretary of Commerce and Community Development shall review 12 |
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410 | 410 | | the recommendations of the Council and issue a final written decision on each 13 |
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411 | 411 | | matter within 60 days following receipt of the recommendations. The 14 |
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412 | 412 | | Secretary may permit an appeal to be taken by any party to a Superior Court 15 |
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413 | 413 | | for determination of questions of law in the same manner as the Supreme Court 16 |
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414 | 414 | | may by rule provide for appeals before final judgment from a Superior Court 17 |
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415 | 415 | | before issuing a final decision. 18 |
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416 | 416 | | (d) The Vermont Economic Progress Council may adopt policies that are 19 |
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417 | 417 | | consistent with the 2015 TIF Rule, as modified by subsequent rulemaking, to 20 |
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418 | 418 | | implement this subchapter. 21 BILL AS INTRODUCED H.378 |
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419 | 419 | | 2025 Page 18 of 18 |
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420 | 420 | | |
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421 | 421 | | |
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422 | 422 | | VT LEG #381015 v.3 |
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423 | 423 | | Sec. 2. 32 V.S.A. § 3325 is amended to read: 1 |
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424 | 424 | | § 3325. VERMONT ECONOMIC PROGRESS COUNCIL 2 |
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425 | 425 | | (a) Creation. The Vermont Economic Progress Council is created to 3 |
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426 | 426 | | exercise the authority and perform the duties assigned to it, including its 4 |
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427 | 427 | | authority and duties relating to: 5 |
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428 | 428 | | (1) the Vermont Employment Growth Incentive Program pursuant to 6 |
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429 | 429 | | subchapter 2 of this chapter; and 7 |
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430 | 430 | | (2) tax increment financing districts pursuant to 24 V.S.A. chapter 53, 8 |
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431 | 431 | | subchapter 5 and section 5404a of this title; and 9 |
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432 | 432 | | (3) housing infrastructure tax increment financing pursuant to 24 V.S.A. 10 |
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433 | 433 | | chapter 53, subchapter 7. 11 |
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434 | 434 | | * * * 12 |
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435 | 435 | | (g) Decisions not subject to review. A decision of the Council to approve 13 |
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436 | 436 | | or deny an application under subchapter 2 of this chapter, or to approve or 14 |
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437 | 437 | | deny a tax increment financing district pursuant to 24 V.S.A. chapter 53, 15 |
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438 | 438 | | subchapter 5 and section 5404a of this title, or to approve or deny a housing 16 |
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439 | 439 | | infrastructure project pursuant to 24 V.S.A. chapter 53, subchapter 7 is an 17 |
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440 | 440 | | administrative decision that is not subject to the contested case hearing 18 |
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441 | 441 | | requirements under 3 V.S.A. chapter 25 and is not subject to judicial review. 19 |
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442 | 442 | | Sec. 3. EFFECTIVE DATE 20 |
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443 | 443 | | This act shall take effect on July 1, 2025. 21 |
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